10 August 2016 | Jamie Harris
Interserve's support services division has reported UK revenues of £899.3 million for the first half of 2016, a drop of 3.6 per cent on the same period in 2015.
The division's operating profit was £43.2 million, a 1.8 per cent fall from H1 2015's £44.0 million figure.
Interserve said its UK support services arm performed well despite the fall in figures, citing strong retention rates throughout the period. It attributed the losses to an expected dip in revenue as a consequence of the hiatus in government procurement around the 2015 general election.
Key award wins during the period included a five-year total FM contract awarded under the government’s Crown Commercial Service (CCS) framework, where it is to provide a number of services to the Home Office, and a £20 million security deal at the BBC, both announced this month.
It also won a three-year FM deal with JLL worth £60 million, which sees the firm provide support services at 18 shopping centres across the UK.
In April, it was also awarded a five-year contract with the Ministry of Defence, valued at £230 million. Under the terms of the deal, the service provider will be responsible for facilities services to the United States Air Force's UK estate.
But in February it announced that it was to exit a £300 million FM deal with a number of NHS trusts in Leicester.
The seven-year deal, which began in 2013, expired in April this year. A joint statement at the time said the original contracts were "no longer appropriate to the needs of the trusts", having been designed more than five years ago.
Group revenue for the first half of 2016 stands at £1.63 billion, a rise of 2.4 per cent on 2015. It reported pre-tax losses of £33.8 million.
The Interserve board announced that the group could no longer undertake contracts for the construction of Energy from Waste facilities in Glasgow. A trading update in May said Interserve expected to make a contract provision of £70 million for this project.